Questions and Answers
The form of business ownership that combines the benefits of a corporation with those of proprietorship and partnerships is a(n) ___________
LLC
The group of individuals who make high-level management decisions for a corporation and establishes company policies is called the _________
Board of Directors
The form of business ownership described as an 'artificial person' is a(n) ___________
corporation
A partner who does not participate in managing the business is a(n) ___________ partner.
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The simplest and most common form of business ownership is a(n) _____________
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Wholesalers are often called ___________
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The __________ market consists of customers who buy products for their own use.
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The customer of a service business is often called a _____________
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Governmental organizations are part of the __________ sector.
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One of the sole purposes of a for-profit business is to be productive and generate money for its _________
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Cooperatives are run ___________
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A major advantage of forming a corporation is ___________
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Which is a form of business ownership that provides limited liability to its owners, but is taxed as a partnership?
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Which is not an advantage of a partnership form of ownership?
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The two common types of partnerships are ___________
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Which of the following is a business that is owned and operated by a single individual?
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An accounting firm that prepares taxes for an advertising agency operates in the _________ market.
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Which is not an example of a not-for-profit organization?
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_________ is a numeric system to classify businesses and collect economic statistics.
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Which of the following is an example of an intermediary?
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What is a portion of a corporation's earnings distributed to stockholders?
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What is a business that is owned and often operated by a single individual?
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What is an organization that exists to serve some public purpose?
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What is a share of ownership in a corporation?
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What is a business that buys products from wholesalers or directly from producers, and sells them to consumers to make a profit?
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What is a business that is owned and operated by those using its services?
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What is a market that consists of customers who buy products for use in a business?
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What is an association of two or more persons who co-own a business with the objective of earning a profit?
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What is a business that buys large quantities of products directly from producers and sells the products in smaller quantities to retailers?
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What is a business that creates goods and services?
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Study Notes
Business Ownership Types
- LLC (Limited Liability Company): Combines benefits of corporations and partnerships, providing flexibility and protection for owners.
- Corporation: Described as an "artificial person," it has legal rights and responsibilities separate from its owners.
- Partnership: A simple and common business form where two or more individuals co-own a business aiming for profit.
- Proprietorship: Owned and often operated by a single individual, offering simplicity in establishment.
Business Management and Structure
- Board of Directors: High-level management group responsible for strategic decisions and company policy establishment.
- General vs. Limited Partnerships: General partners manage the business, while limited partners do not participate in management.
Market and Consumer Definitions
- Consumers: Customers who purchase products for personal use, forming the consumer market.
- Business Market: Consists of customers who buy products for operational use, such as accounting firms serving businesses.
- Retailers: Businesses that purchase products from wholesalers or producers and sell them to consumers for profit.
Organizational Types
- Not-for-Profit Organization: Exists to serve a public purpose rather than to generate profit.
- Cooperative: Owned by users for mutual benefit; operates democratically.
Business Financial Aspects
- Dividends: Portions of corporate earnings distributed to stockholders as a return on investment.
- Stock: Represents ownership in a corporation and entitles shareholders to a share of profits.
Industry Specifics
- NAICS (North American Industry Classification System): A numeric system designed to classify businesses and gather economic data.
- Wholesaler: Buys products in bulk from manufacturers and sells them in smaller quantities to retailers.
- Intermediaries: Businesses like new car dealerships serve roles between producers and consumers.
Key Business Concepts
- Limited Liability: A primary advantage of corporations allowing owners to limit personal risk to their investment in the company.
- Business-to-Business (B2B): Transactions between businesses, such as an accounting firm working for an advertising agency.
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Description
Test your knowledge with these flashcards on key concepts from Chapter 4 of Intro to Business. Each card presents a term and its definition, helping reinforce important ideas like business ownership structures and corporate governance. Perfect for students looking to review foundational business principles!
